Average TSP Balance at Retirement

[alevin]

Alevin, that was a very interesting article but it felt like it should have been titled, "How NOT to Trade the Choppiest Environment in 50 Years". I can tell from reading the article that my current strategy of "buy strength and sell weakness" is not the plan but I didn't get a strong enough endorsement of ANY plan to feel better about something else.

It sounds like you may be on the verge of figuring out a strategy, so what was YOUR take-away from the article?

TIA for any insights!

Lady

Lady my dear, I'm going to move this part of the conversation back over to my account talk, follow me over there if you want to hear what I'm thinking-its still taking shape in my muzzy brain. :nuts:

 

[Silverbird]

As I posted a couple months ago, L isn't the place to be, especially long term L. This is the first test of L in a downturn, but I'm not going to test it with my toes!
----------------------------------
Hello, little birdeens out there, it's time for the midyear assesment!

C, S, I, L2040, L2030: Tweety: "I taht a tah a Puddy Ta...."[*crunch* meow that tastes goood with milk]

L2020, L2010, LIncome: Tweety: *Flapflapflapflap* [*crack* goes the branch] *SQUAWK* *Yipe* [Wile E Coyote fall]

G, F: Tweety up in a tree, picking at a branch with only a couple leaves left. He looks down, "I taht I taw a Puddy Tat! I did! I did!" Sylvester is sitting picking out the blues on a guitar. Next to him is a pile of bird seed.

Not that I'm guessing the best but it's better than getting eaten:
Silverbird at 0.69% sitting on a low bare branch a bit above Silvester: *Squawk, squawk,squawk* (grumble). "Not much here to add to my nest egg!"

 

[luv2read]

They want us in L Funds, pure and simple. The question is, why? If they want us there, it's not for OUR good...it's for Barclay's. Remember the regulatory rule of thumb, if regulators are in favor of it, it's good for THEM, not necessarily good for YOU. Here's a few interesting facts.

• All of TSP's $225B is invested in Barclay's index funds - no others. Every payday there is a guaranteed influx of new cash into those funds via payroll contributions. Nice for Barclay's! Especially since they have no requirement to make good on losses if they go under. Barclays was substantially invested in the two BSC hedge funds that failed last year that sounded the alarm on the credit crisis, and has sued to recoup losses. I can't get any information from BGI as to whether or not any % of the TSP index funds were invested in those hedge funds.
• $224B in TSP as of July 13, 2007 (see http://www.govexec.com/dailyfed/0707/071307rp.htm). There is $225B in TSP as of July 2008, a year later. The fund grew by just $1B in a year...despite new hires, despite a "membership drive," despite earnings, despite contributions, despite that peak last year. Compare this to the growth over the past 5 years.
• TSP loans and withdrawals have increased since MAY. FRTIB is attributing this to people withdrawing for living expenses. IMO this need is just a small percentage of the drawdowns, especially considering the timeline...May is when the limited IFT's rule took effect. I think the majority of the money withdrawn is being used to fund other investment accounts. Several MB members have made outstanding returns doing this.

L funds are money losers this year. 1% of the TSP was moved to G and is now earning 4%. Sanchez is SURPRISED people would move their money from losing funds for CP in the current economic climate? And he's on the Board? It's time DOL changes the law so that FRTIB is filled by representatives elected by TSP members, not political appointees.

 

[hessian]

Hi L2R,
I was hoping someone would weigh in with some facts, to really discusss this isuue. Excellent!
One more set of facts I wish we could find out (don't know if possible):
What number/percerntage of folks on the TSP Board are currently 100% in an L-Fund (without arm-twisting of course); :notrust:
What number/percerntage of folks that are on the the FRTIB?; :blink:
What number/percerntage of folks that work for DOL? :nuts:

They want us in L Funds, pure and simple. The question is, why? If they want us there, it's not for OUR good...it's for Barclay's. Remember the regulatory rule of thumb, if regulators are in favor of it, it's good for THEM, not necessarily good for YOU. Here's a few interesting facts.

• All of TSP's $225B is invested in Barclay's index funds - no others. Every payday there is a guaranteed influx of new cash into those funds via payroll contributions. Nice for Barclay's! Especially since they have no requirement to make good on losses if they go under. Barclays was substantially invested in the two BSC hedge funds that failed last year that sounded the alarm on the credit crisis, and has sued to recoup losses. I can't get any information from BGI as to whether or not any % of the TSP index funds were invested in those hedge funds.
• $224B in TSP as of July 13, 2007 (see http://www.govexec.com/dailyfed/0707/071307rp.htm). There is $225B in TSP as of July 2008, a year later. The fund grew by just $1B in a year...despite new hires, despite a "membership drive," despite earnings, despite contributions, despite that peak last year. Compare this to the growth over the past 5 years.
• TSP loans and withdrawals have increased since MAY. FRTIB is attributing this to people withdrawing for living expenses. IMO this need is just a small percentage of the drawdowns, especially considering the timeline...May is when the limited IFT's rule took effect. I think the majority of the money withdrawn is being used to fund other investment accounts. Several MB members have made outstanding returns doing this.

L funds are money losers this year. 1% of the TSP was moved to G and is now earning 4%. Sanchez is SURPRISED people would move their money from losing funds for CP in the current economic climate? And he's on the Board? It's time DOL changes the law so that FRTIB is filled by representatives elected by TSP members, not political appointees.